{"id":6197,"date":"2020-12-17T13:59:39","date_gmt":"2020-12-17T05:59:39","guid":{"rendered":"http:\/\/www.biztreemgmt.com\/wordpress\/?p=6197"},"modified":"2022-12-08T00:23:32","modified_gmt":"2022-12-07T16:23:32","slug":"what-is-the-effect-of-incorporation","status":"publish","type":"post","link":"http:\/\/www.biztreemgmt.com\/wordpress\/what-is-the-effect-of-incorporation\/","title":{"rendered":"What is the Effect of Company Incorporation"},"content":{"rendered":"\n
After successfully incorporation with ACRA , Company become legal business vehicle to join business landscape. <\/p>\n\n\n\n
What is the effect for being Company? <\/p>\n\n\n\n
SEPARATE LEGAL ENTITY CONCEPT <\/strong><\/p>\n\n\n\n
Company carry concept of SEPARATE LEGAL ENTITY between company and its shareholder .<\/p>\n\n\n\n
Which means that Company is able to stand alone in the eyes of law .<\/p>\n\n\n\n
<\/p>\n\n\n\n
ABILITY TO OWN PROPERTY <\/strong><\/p>\n\n\n\n
Because of the Separate legal Entity concept, Company is free to own property for own used or as investment .<\/p>\n\n\n\n
<\/p>\n\n\n\n
ABILITY TO SUE AND BE SUED UNDER COMPANY NAME <\/strong> <\/p>\n\n\n\n
Since company carry separate legal entity, so it responsible for it own act . <\/p>\n\n\n\n
Any wrong done to the Company, only Company itself can take action <\/p>\n\n\n\n
Shareholder liabilities or risk taken up to the amount of their invested into the company.<\/p>\n\n\n\n
PERPETUAL SUCCESSION<\/strong><\/p>\n\n\n\n
Company shall exist until application to close is done and approved by ACRA .<\/p>\n\n\n\n
Company’s life span does not depend on the officer or shareholder of the Company .<\/p>\n\n\n\n
Unlike sole proprietor , where exist of owner means that cease of the business <\/p>\n\n\n\n